The decision of the Federal Reserve to keep buying $85 billion a month in bonds appears on a television screen Wednesday on the floor of the New York Stock Exchange.

Written by

Paul Davidson
| USA Today

The Federal Reserve agreed Wednesday not to pare back its extraordinary stimulus, citing a recent slowdown in the housing recovery and federal spending cuts.

In a statement after a two-day meeting, the Fed said it would continue to purchase $85 billion a month in Treasury bonds and mortgage-backed securities to hold down long-term interest rates and stimulate economic growth.

The move was widely expected after Fed policymakers stunned financial markets last month by putting off a reduction in purchases amid only modest improvement in employment and a budget battle in Congress. ...